Announcement PDF FLASH JOULE HEATING: A NEW ERA OF SUSTAINABLE METAL EXTRACTION PRESENTATION AT COSM 2024, SEATTLE WA 04 November 2024 ASX: MTM Overview • MTM Critical Metals Ltd is an ASX-listed emerging Industrial Technology Company at the forefront of innovation in the critical minerals and metals sectors. • We are committed to advancing the commercialisation of our sustainable Flash Joule Heating (FJH) metal recovery and processing technology, and re-shoring Critical Metals supply back to the USA. Core Technology Commercial Focus 2 • FJH revolutionises metal extraction from ores & waste, allowing more efficient processing compared to traditional methods • Applications in Minerals Processing & Waste Streams (mine tailings, bauxite residue (red mud), e-waste and battery recycling), significantly contributing to a circular economy • Licenced (worldwide & exclusive) from Rice University, Texas • Industrial Validation: Design underway for 1-ton-per-day FJH Demonstration Plant • Primary Metal Focus: gallium (Ga) from waste streams & lithium from spodumene concentrate, aligning with current global demand & strategic importance • Commercial production of Ga expected by Q4-25, positioning MTM for transformative growth & potentially re-shoring Ga in the U.S., addressing a major national security risk MTM: Australia & U.S. Presence KNIGHTHAWK ENGINEERING ENGINEERING DESIGN & SCALE-UP Houston, Texas, USA Perth Australia Flash Metals USA HQ (MTM) Houston, Texas MTM HQ Perth Australia FJH PIONEERS / R&D Houston, Texas, USA MTM has a Global Licence Agreement for FJH with Rice University KnightHawk was founded in 1991 and specializes in bespoke engineering design solutions 3 MTM: How can I Buy Shares? • MTM is listed on the Australian Stock Exchange (Ticker ASX: MTM) • The Company is exploring options to undertake a U.S. listing via the over-the-counter (OTC) markets, operated by OTC Markets Group (OTCQB). This is expected to be finalised in the coming weeks OTCQB: ASX Coming Soon 4 Coming Soon: U.S. listing of shares through OTC Market • In the U.S., there is a substantial pool of capital and strong investor demand for opportunities that integrate Natural Resources / Metals with cutting-edge Technology. • The Company is exploring options to undertake a U.S. listing via the over-the-counter (OTC) markets, operated by OTC Markets Group (OTCQB). This is expected to be finalised in the coming weeks. Advantages: • Tap into the largest pool of capital, across the full spectrum of U.S. investors including high net worth and investment funds • Enhanced liquidity with trading volumes settled via ASX • Leverage ASX listing qualifications to meet OTC listing requirements, enabling U.S. compliance without the high costs associated with full NASDAQ or NYSE listings (at this stage) • Market information is directly disseminated through U.S. newswire services, providing significant reach to investor platforms. Example of Other Australian Companies with Dual Australian & U.S. Listings: • IperionX Ltd • Silex System Ltd • Amaero International Ltd 5 U.S. Dependency on Critical Metals >95% reliant on imports for the 13 most “critical” metals, with China being the primary import source for > 50% of these. Source: Visual Capitalist (2023) 6 Disconnect Between Technology and Natural Resources • Modern technology & civilisation is underpinned by metals (underappreciated by most of society). • Critical technologies, including Military Defence, AI, Robotics, Energy Storage, & quantum computing. • Lithium, cobalt, nickel, and REEs are the backbone of batteries, semiconductors, and electric grids. • Despite this, investment in natural resources is at historic lows, but the cycle is turning. • ESG / Indexation & Passive Investing ⇒ Growth Stocks / Poor prior cycle performance Natural Resource Stocks as % of S&P500 (Energy & Metals) 1925 1975 38% 47% 2023 5% Source: Goehring & Rozencwajg Associates, LLC; Bloomberg (2024) 7 The Natural Resources Cycle is Turning Source: Incrementum AG (2024) 8 EXAMPLE: Metals in Electric Vehicle Battery Typical 60 kWh ‘NCMA’ battery 185 kg metals • 6 kg lithium • 29 kg nickel • 20 kg copper • 8 kg cobalt Source: VisualCapitalist (2022) 9 EXAMPLE: Datacentres‒ The Silent Giants of Metal Consumption Metal Estimated Tonnes per MW Copper (Cu) 27 Aluminium (Al) 10 Steel 40 Lead (Pb) 4 Lithium (Li) 0.1 Nickel (Ni) 0.5 Cobalt (Co) 0.2 Gallium (Ga) 0.05 Rare Earths 0.05 Microsoft’s $500M datacentre in Chicago required 2,200 t of Copper Source: Data Center Catalog, 2021. Gallium nitride power systems seek a larger foothold in data centers. https://www.datacentercatalog.com Visual Capitalist, 2023. Why copper is critical for data centers. https://elements.visualcapitalist.com 10 Global Datacentres (~6,000): Majority in USA • Est. Up to 70 % of World’s internet traffic flows through a handful of rural counties in the American northeast Global Datacentres Number of Data Centres 80 3000 • Major growth anticipated over next decade 40% of World’s total are in USA (~3,000) Source: PlanetTracker.org (2024); Geographical (2024) 11 EXAMPLE: Rare Earth Elements Crucial in Defence Applications F-35 ~420 kg REO Arleigh Burke-class destroyer ~2,400 kg REO USS Virginia ~4,200 kg REO Source: Congressional Research Service (2023) Smartphone (iPhone) Wind Turbine (3 MWh) 16 REE Elements 0.05 kg REO 4 REE Elements 2,000 kg REO 12 Growing Demand and Supply Chain Risks • Demand for critical metals will skyrocket over the next decade driven by Computing & the “Energy Transition”. Example COPPER Total amount of Copper produced over human history Copper required to achieve “net zero” by 2050 Source: VisualCapitalist (2024) 13 Global metal supplies are dwindling • High-grade ore bodies have been depleted. The “easy” stuff has been found • More waste material must now be processed to extract the same amount of metal. Source: S&P Global IQ (2012) 14 World now depends on older mines with declining grades Top 20 Copper Mines by Production in 2023 - Dominated by by archaic mines 20% started > 100 years ago! 15 Source: Merlin Marr-Johnson (Crux Investor, 2024) Mine Country Mine Commencement Years in Production 2023 Cu Production El Teniente Chile 1819 205 401 Bingham Canyon USA 1863 161 310 Chuquicamata Chile 1879 145 400 Buenavista del Cobre Mexico 1899 125 535 Polar Division Russia 1935 89 450 Morenci USA 1937 87 570 Cerro Verde II Peru 1976 48 500 Escondida Chile 1990 34 1,350 Grasberg Indonesia 1990 34 770 Collahuasi Chile 1999 25 640 Los Pelambres Chile 1999 25 370 Antamina Peru 2001 23 450 Kansanshi Zambia 2005 19 340 Los Bronces Chile 2007 17 340 Tenke Fungurume DRC 2009 15 400 Las Barnbas Peru 2016 8 400 Cobre Panama Panama 2019 5 380 Kamoa-Kakula DRC 2021 3 430 Quellaveco Peru 2022 2 350 Toromocho Peru 2022 2 320 Chinese Dominance in Rare Earths • China has ~ 30% of worlds REE reserves, YET • China controls ~100% EV, Wind Turbine, & Military Grade NdFeB Magnet Production • China undertakes > 90% of the downstream refining & manufacturing of REEs • Only one single Western Company with ability to produce NdFeB Magnets • Separation IP originally developed in the US post WWII (Ames lab / Manhattan project) Magnetic REE Value Chain - Complete Dominance by China MINING SEPARATION 30% 90% Source: James Kennedy (2023) METAL ALLOY MAGNET 91% 95% 90% 16 Chinese Dominance in Rare Earths • Early 1980’s (Regan / Thatcher era) ⇒ • Major offshoring & Technology Transfer push to China (lower costs & less regulation) • Massive expansion of Chinese R&D into REE Metallurgy and Processing • 1992 – Deng Xiaoping • Magnequench – USA-pioneered developer of REE magnets, acquired by China Source: James Kennedy (2023) 17 Environmental Costs of Extraction - REEs Baotou, Inner Mongolia • World's biggest supplier of REEs for last 40 years • Weikuang Dam: 12km2 of Tailings Dam (artificial lake) • Unlined • Radioactive Source: S&P Global IQ (2012) 18 Environmental Costs of Extraction - REEs Myanmar’s & China’s clay leaching Major source of cheap REEs since 1970s 19 Environmental Costs of Electronic Waste World’s largest e-waste dump in Agbogbloshie Ghana, Africa 20 Flash Joule Heating: A New Era of Sustainable Metal Extraction 21 Processing Technology Breakthroughs that Changed History Bessemer Converter 1856 Modern Rotary Kiln 1885 Fluidized Bed 1921 1st Inexpensive method to mass produce steel Revolutionised Continuous processing Revolutionised Petroleum cracking ElecArc Furnace (MiniMill) 1955 Revolutionised scrap metal recovery. Initially ridiculed What’s Next?...... Source: Perrys Chemical Engineer’s Handbook (2002) 22 ElecArc Furnace (MiniMill) U.S. Raw Steel Production by Technology: 1900-2024 180 • Nucor's Vision: adoption of MiniMill operations faced industry ridicule. • Breakthrough Success 1980s: Nucor introduced thin-slab casting, disproving critics. • Industry Shift: MiniMills scaled up challenging traditional steelmaking. • MiniMills now dominate U.S. steel production U.S. Raw Steel Production (million tons) • Initial Skepticism: Large steelmakers dismissed MiniMills, doubting their scalability. Open Hearth Bessemer Basic Oxygen Process Electric Arc Furnace 160 140 120 100 80 60 40 20 0 1880 • • • • Canary Media, 2024. Steelmaking is starting to go electric. Available at: https://www.canarymedia.com Congressional Research Service, 2023. Domestic Steel Manufacturing: Overview and Prospects. Available at: https://crsreports.congress.gov IRENA, 2023. Solutions to decarbonise heat in the steel industry. Available at: https://www.irena.org ITAD Daily, 2024. Funding Secured for U.S. Steel's Big River Expansion Project. Available at: https://itaddaily.com 1900 1920 1940 1960 1980 2000 2020 2040 23 Introducing Flash Joule Heating (FJH) • Originally developed by Dr James Tour at Rice University to produce graphene, FJH has evolved into a method for efficiently extracting metals from unconventional sources like e-waste & mine tailings. • Potential to revolutionise metal recovery by reducing energy consumption, reagent use and waste, offering a more economical and environmentally friendly alternative. Problems we are trying to solve: Traditional metal recovery methods are expensive, energy & reagent-intensive, and non-selective Pyrometallurgy (high heat) ⇒ Ineffective, NonSelective & Expensive The solution: Breakthrough Flash Joule Heating Platform WASTE ORE Hydrometallurgy (strong solvents) ⇒ Ineffective, Non-Selective & Expensive Refractory Minerals – require significant energy & acids to process METAL 24 How does it Work? Example Refractory Minerals • Target metal of interest “locked” in “glass” jail (tight bond) • Liberate the target metal of interest by thermal shock. i.e. Li from Spodumene SPODUMENE (Li) LIBERATE EXTRACT CHLORINE LiCl Refractory mineral matrix 25 Real-World Success with FJH Extract valuable metals from Industrial Waste Streams Spent Li-Ion Batteries High value E-Waste FJH Semiconductor Scrap Mine Tailings Improve performance of refractory Mineral Processing Operations Lithium Rare Earths Niobium Antimony 26 “Game changer” potential for the Lithium industry Spodumene is the primary source of Li globally, and the traditional extraction process involves significant energy usage & recovery inefficiencies 3 distinct opportunities Improve Calcination 27 Complete flowsheet revamp using FJH Chlorination Recover unrecoverable material & reprocess tailings E-Waste – a rich source of metals Weight and value of metals contained in the 62 Mt of e-waste generated globally in 2022 2.1 Mt 270 t 0.52 Mt 3.9 Mt 120 t US$19B US$15B US$14B US$11B US$8B 44 kt 280 kt 1,200 t 28 kt US$1.4B US$1B US$0.9B US$0.3B Source: Forti et.al 2024; Patel,2024. 28 Real-World Success – E-Waste & Gallium / Indium Scrap Source: See previous ASX:MTM announcements. 29 We are preparing for commercial scale-up with our FJH Demonstration Plant (“FDP”) Initial plant to be located in Texas Onshoring Critical Metal Supply Chains - GOLD • Strong demand project over next decade due to monetary debasement & worsening geopolitics • iPhone / Gold Ratio • In “fiat” dollars – the iPhone has increased in price by ~150% since 2007 (5.5% CAGR) • In ounces of Gold, it has decreased by ~ 50% RRP $599 Source: Incrementum AG (2024) $849 $1,149 $1,499 31 Onshoring Critical Metal Supply Chains - GALLIUM Major Gallium & Germanium Importers from China • Market Supply Issues: The global gallium market has been severely impacted by China’s export restrictions, leading to dramatic price increase. • Crucial for various applications, including semiconductors, LEDs, solar panels and defence technologies like radar systems. Source: S&P Global (2023) Global Gallium Metal Price Trend since 2018 Gallium Metal - Global Price, U.S. dollars per ton 900,000 • Domestic USA stockpile = 0 tons Demand surge from integrated circuits, light-emitting diodes (LEDs), & solar cells Ga Metal Price (USD/t) 800,000 700,000 600,000 500,000 Chinese export controls 400,000 300,000 200,000 100,000 Domestic US Stockpile Tonnage = 0 0 2018 • Statista 2024, Gallium price worldwide from January 2018 to January 2024, https://www.statista.com/statistics/1443942/gallium-global-price/ • United States Geological Survey (USGS) 2024, Gallium Mineral Commodity Summaries 2024, https://pubs.usgs.gov/periodicals/mcs2024/mcs2024-gallium.pdf 2019 2020 2021 2022 2023 2024 Source: Statista (2024), USGS (2024) 32 Onshoring & Localising Critical Metal Supply Chains 33 Conclusion – FJH = New Era in Sustainable Metal Extraction • The next generation of metal recovery technology • Enhances national security by reducing reliance on imports. • Sustainable solution for by converting waste into value • Empowers industries with local access to critical metals for tech ASX: MTM U.S. Listing Coming Soon 34 • Scalable solution for growing demand • Investment tailwinds: Right time in the investment cycle for n. resources CONTACT Michael Walshe CEO, MTM Critical Metals Ltd MTM Critical Metals Limited Suite 2, 38 Colin Street, West Perth, WA 6005 Australia Phone 08 6391 0112 | Email info@mtmmetals.com.au ASX:MTM mtmmetals.com.au Steven Ragiel President, Flash Metals USA, Inc. 35